Overview
- U.S. crude exports jumped to a record 5.6 million barrels per day in May, with Asia taking about 2.45 million b/d and Europe about 2.4 million b/d, driven by a large WTI discount that made American barrels cheaper for foreign refiners.
- Goldman Sachs warned that weak fuel consumption and industrial data in China and parts of Europe could force it to cut its Brent outlook by roughly $10 per barrel, increasing the chance of lower prices despite Middle East supply risks.
- Market sourcing shifted after the U.S. and Israel's February 28 military action against Iran created supply uncertainty, prompting refiners in Asia and Europe to secure alternative crude from the United States.
- Gold remains elevated but volatile, with recent U.S. spot levels near $4,522 per ounce and a 52‑week peak around $5,597, while central banks show mixed behavior—some boosting reserves and others selling to raise liquidity—and U.S. political calls for a Fort Knox audit have added scrutiny to official holdings.
- The new flows and reserve moves could widen price swings for both oil and gold, affecting refinery sourcing, consumer fuel costs, and central‑bank balance sheets if demand stays weak or if geopolitical tensions shift supply again.